The theory that spot Bitcoin exchange-traded funds would act as a shock absorber during market downturns is facing its most significant test yet, as the cryptocurrency plunges to its lowest level in nearly two years.
Bitcoin fell to approximately $58,000 on Thursday, marking a 21-month low.
MarketWatch reported that the structural stability promised by the ETF launch is being questioned as outflows persist.
The decline was driven by sustained selling pressure from ETF investors and a broader risk-off environment fueled by elevated interest rates.
MarketWatch reported that the structural stability promised by the ETF launch is being questioned as outflows persist.
Handelsavisen analysis indicates that capital is rotating out of digital assets and into high-growth themes, particularly artificial intelligence.
This shift suggests that Bitcoin is losing its status as a preferred risk-on asset for institutional portfolios, which are increasingly favoring tangible tech growth over speculative crypto exposure.